Important Recovery tips from the University
of Minnesota Extension Service
Money and Crisis Cards:
- Family members, including children old enough, should be involved in decisions.
- Be prepared for emotional reactions from yourself and family
- Set a specific time and place for the discussion. Select a location where you won't be interrupted.
- Clearly identify the issues.
- Let each family member freely discuss his or her feelings and financial priorities. Avoid judging.
- Negotiate to settle differences. Compromise.
- DO NOT SIGN A "PROOF OF LOSS" FORM which notes that this is a "full, final and complete settlement"
- DO NOT ACCEPT A CHECK from the insurance company that denotes "full, final and complete settlement"
- Once your property is repaired or replaced, there may be additional expenses for which you are en titled to reimbursement from your insurance company. If you sign off on or accept a check with the statement of "full, final and complete, you may be releasing the insurance company for any further damages related to the floods
- Keep accurate recordsabout finances.
- Cut back on current spending as much as possible.
- Use cash reserves if you have them.
When emergency passes, rebuild reserves.
- Use your credit card, but use it wisely. Consider a loan instead, or a loan to pay back to full balance on a high-interest credit card.
- Borrow against your assets.
- Liquidate assets.
- Discuss financial decisions with your family and try to make difficult decisions together.
- Barter repair work with neighbors and relatives.
Financial assistance in the form of assistance, grants and loans may be available.
WHAT YOU'LL NEED
- An itemized list of losses with your estimate of the repair or replacement cost of each item.
- Copies of your federal tax returns from the last three years.
- Copy of your deed, mortgage or lease
- Insurance policy records
- Proof of monthly income
- Driver's license and Social Security number
- Personal and business financial statements
- List of current loans you have out
- Check with the Better Business Bureau for any complaints filed against the contractor.
- Request a performance bond in the total amount of the construction project. This will protect you if the contractor does not complete the work to your home.
- If a contractor is subcontracting any portion of the work, request a payment bond from the contractor. This protects you from any liens being assessed to your property by the subcontractors if the contractor does not pay them.
- If a subcontractor is not involved, a signed lien waiver should be obtained from the contractor in exchange for final payment.
- If jurisdiction requires, the contractor must provide evidence that the company is licensed and bonded.
- Request a certificate of insurance which names the property owner as additional insured.
- Keep accurate records
